Market research and forecasting the elasticity of demand and its analysis

Date of publication: August 1, 1969

Abstract:

All market research aims to fix the efficacy of the sales and to know the demand and the influence of certain factors upon the consumers' manifestations and their decisions. The determination of the necessities which must continually satisfy industry is a complex process with multilateral implications, based essentially on the market study. Among the market studies, an important part is reserved to the econometrical analysis of demand. Even field research, the empiric research of economic sociology and of social psychology, cannot dispense with the econometrical analysis of demand, characterising the market, the market's potential, its absorbing capacity of different products, This is the basic frame of all marketing research, and no marketing techniques must ignore the great economic relations - as is the case with income or price - in consequence of which the market's processes are settled. Although we can know and evaluate a series of factors determining and influencing certain products' demand, it is not easy at all to know this demand, as it constitutes a very fluid process, in permanent movement of continual adaption of the buyer to the changes and modifications of his own situation and its surroundings. The phenomena to be studied are therefore numerous, different and multi-directed. The main purpose of studies is the research of the relations allowing a more precise forecast of the demand and of the consumers' decisions.

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